Using the tax rates and the tax brackets for 2019 (which are the ones used in the John and Jane example), compute the total tax for a married couple filing jointly with combined taxable income of $610,000.

Group of answer choices

$163,886

$213,500

$164,708

$168,791

$196,641

Question 2

In the Jane and John example (pre-class work), why is their Adjusted Gross Income (AGI) only $83,000 when their total income is $91,000?

Group of answer choices

Subtraction for IRA contributions

Subtraction for earned income tax credit

Subtraction for dividends

Subtraction for home mortgage interest

Subtraction for charitable contributions

Question 3

In the Jane and John example you prepared, why is it that they receive a refund in lieu of paying more taxes when they file their tax return?

Group of answer choices

Jane and John elected to have the refund amount withheld from their taxes for use as a short-term savings account

Their AGI (Adjusted Gross Income) fell below the minimum threshold that would require them to pay taxes

The three dependents (Mary, Sally, and Sheri) living with Jane and John decreased their AGI (Adjusted Gross Income) to an extent that made the government owe them money

The tax they had withheld from their paychecks exceeded the tax liability for the year

Any taxes paid before the passage of the Tax Cuts and Jobs Act in 2017 in excess of the TCJA rates get refunded to the taxpayer.

: Question 4

Which of the following sources of income are included in AGI (Adjusted Gross Income)? Select all that apply.

Note: This question is asking about AGI in generalNOT about John and Jane's AGI from the example you completed

Group of answer choices

Wages reported on Form W-2

Interest income reported on form 1099-INT

Money saved by taking the Standard Deduction

Other miscellaneous income reported on Form 1099

Money saved by receiving child tax credits

Dividend income reported on form 1099-Div

Flag question

Referring to the John and Jane Doe tax example you prepared, the amount a person owes in taxes is computed using which basis from the From 1040?

Group of answer choices

Line 7b Total Income

None of these options

Line 8b Adjusted Gross Income

Line 11b Taxable Income